ISLAMIC BANKING SYSTEM

(Shah Nawaz Bokhari, Rawalpindi)

Background and Introduction

Philosophy of Islamic banking is different to conventional banks. In Islamic term Mudarib is called entrepreneur or partner who has provided expertise in management. These words came from Arabic language, the Mudarabah term mean two type of partner one is Rubbul-mal (investor) and second term is amil. Similarly, the word Musharakh means sharing of assets into business. The term Riba means Sood (Interest). We knew it the conventional Banking system is based on Riba (interest) which is prevailing in the entire world. Normally, all the Banks has been operating three mode of financing. The Conventional Bank are providing different facilities to their customers. For example, the Conventional Bank offer to facilitate to their customers for open accounts in following three modes i.e, Current account, saving account and joint accounts to save their deposit money as well. Every bank is also provide the facility of lockers to protect their precious gold etc. However, the banks takes some security charges for providing facility to their customers. However, there is no markup or interest has been provides to the current account holders. On the other hand, the saving account and Joint account holders are taking interest on their investment or in different schemes. The Islamic Banking system is slightly different in conventional Banks. The Riba is not allowed in any transaction nor deposited amount. However, some proportion of capital assets which is invested by the partners may get some benefit in business.

The Qardh mean loan is usually spoken in conventional Banking system but it is pre-exit in Islamic Banking. We are living in Muslim State. Our main purpose is to eliminate Riba system which is circulating money in few hands. All type of conventional banks is based on interest That income is called Haram according to Quran. All different types of scheme i.e. fixed deposited scheme is consider Haram income. The depositors are not doing any work or nor made any contract with the Banks but they have received money at end of the each month's. That amount which they have been acquired from Banks is called haram-mal. Conversely, the sole object of Islamic Banking system is to eliminate Riba.

The concept of Riba had developed by Islam in one Hundred fourteen thousand years ago in Mukkah. The Riab system is mentioned in Holy Quran chapter No. 01 and Para 02 Sura-Al Baqarah(240-245) and even convey its harmful consequences. The trend of this world does not change to eliminate (Riba) but desires to reaming indulge into business system. Today, the World Bank has unanimously agreed; no free interest banking system would prevail. The Interest free Banking System is pure Islamic concept of financing. It would explore and merged new ways of Business.

Q: Why we need Islamic Banking. We are Muslim and adhering Islam. We can’t adopt Riba system in any Business or trade. It burns our faith immediately. Allah Almighty nor accept our deeds. This step would directly fight with Allah and Rasool. Conversely, we should make our transaction or deposited amount according to Quran and Sunnah. Even we should void all types of Riba in trade or any business. Similarly, the Riba which you have taken before may get rid of and pardon to others or which it will remain let it off. (Quran) But you have right to take of your original amount which gave to others. Those who are loved with Allah and Rasool, they don’t indulge Riba any business nor merged their profit even sood (Interest) too.

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مزہبی کالم نگاری میں لکھنے اور تبصرہ کرنے والے احباب سے گزارش ہے کہ دوسرے مسالک کا احترام کرتے ہوئے تنقیدی الفاظ اور تبصروں سے گریز فرمائیں - شکریہ